Northwest Offers Unions Preferred Stock

Law360, New York (February 20, 2007, 12:00 AM EST) -- Unions involved in Northwest Airlines Corp.’s bankruptcy proceedings have won a concession from the carrier—referred stock issued to thousands of union employees in 1993 will be honored.

Northwest agreed on Friday to give its flight attendants, ground workers and mechanics that hold “Series C” preferred shares an unsecured bankruptcy claim worth $277 million. The claim is one of the 10 largest unsecured claims in the company’s Chapter 11 proceedings, and is still subject to court approval.

The International Association of Machinists and Aerospace Workers has a...